Morgan Stanley Restores Nvidia as Top Semiconductor Pick with $300 Price Target

Nvidia's stock price rose over 1.5% in early Friday trading after Morgan Stanley reinstated it as its top semiconductor pick, retaining an Overweight rating and a $300 price target.

Analyst Joseph sees data-center constraints becoming an important factor for AI infrastructure spending, with limited access to electricity, land, and financing favoring companies that can provide more computing capacity from each unit of available power.

Nvidia's customer mix also supports demand, with about half of its business coming from buyers outside the biggest cloud providers and major AI laboratories, including enterprise customers, system manufacturers, and sovereign buyers.